TOP NEWS: BAE Systems confident as trades in line with forecasts

(Alliance News) - BAE Systems PLC on Wednesday said its "good" operational performance so far in ...

Alliance News 19 May, 2021 | 8:55AM
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(Alliance News) - BAE Systems PLC on Wednesday said its "good" operational performance so far in 2021 underlined overall confidence in its full-year outlook.

The London and Farnborough-headquartered security and aerospace company said Air, Maritime, Electronic Systems and Intelligence & Security units continue to perform strongly and there was positive momentum in Platforms & Services.

The FTSE 100-listed company also noted that combat vehicle production across multiple platforms continued to ramp and is on track to meet agreed delivery schedules. Applied Intelligence has had a good start to 2021, with improved performance together with realised benefits from the restructuring.

Elsewhere, BAE Systems said its backlog and programme positions supports its growth expectations in the coming years, and the pipeline of opportunities across all sectors remains strong. Demand for its capabilities also remains high, with order intake ahead of expectations.

BAE Systems confirmed that its 2020 final dividend of 14.3 pence per share will be paid on June 1.

Looking ahead, the company said sales and underlying earnings before interest and tax growth expectations for 2021 remain on track.

At the end of February - when the company reported its 2020 results - it had said it expects underlying earnings before interest, tax and amortization in 2021 to increase in the range between 6% to 8%. Excluding the impact of foreign exchange, BAE Systems anticipated growth in excess of 10%.

In 2020, underlying Ebita was GBP2.13 billion.

The company also said at the time that it expects sales to grow in the 3% to 5% range in 2021 year-on-year. Excluding the impact of foreign exchange, BAE Systems said it expects growth to be between 5% and 7%.

In 2020, sales totalled GBP20.86 billion.

Underlying earnings per share were expected to increase in the range of 3% to 5%.

"Our good operational performance underlines our confidence in the full year guidance for top line growth and margin expansion and our three-year cash targets. Strategically, our geographically diverse portfolio is aligned to growing defence budget areas; we're ramping up investment in self-funded R&D aligned to customer focus areas and we're leveraging our leading capabilities in evolving markets to ensure we're increasingly well placed to deliver for all our stakeholders," said Chief Executive Officer Charles Woodburn.

BAE Systems shares were trading 0.6% lower in London on Wednesday at 517.20 pence each.

The company will report results for the six months to the end of June, on July 29.

By Evelina Grecenko; evelinagrecenko@alliancenews.com

Copyright 2021 Alliance News Limited. All Rights Reserved.

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Securities Mentioned in Article

Security Name Price Change (%) Morningstar
Rating
BAE Systems PLC 559.20 GBX -0.18

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